NOTE: As provided in LFC policy, this report is
intended only for use by the standing finance committees of the
legislature. The Legislative Finance Committee does not assume
responsibility for the accuracy of the information in this report when used for
other purposes.
The most recent FIR
version (in HTML & Adobe PDF formats) is available on the Legislative
Website. The Adobe PDF version includes
all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be
obtained from the LFC in
|
SPONSOR: |
Sandoval |
DATE TYPED: |
|
HB |
885 |
||
|
SHORT TITLE: |
Lottery Scholarship Eligibility |
SB |
|
||||
|
|
ANALYST: |
Williams |
|||||
APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
|
|
|
Fiscal impacts begin in FY05; see
text |
Recurring
(with escalation over time) |
Lottery
Tuition |
|
|
|
|
|
|
|
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to SB 27, SB 77, SB 217, SB 277, SB 373
Relates to HB 32, HB 81/a, HB 125, HB 171/a, HB
807, HB 885
LFC Files
Commission on Higher Education (CHE)
SUMMARY
Synopsis
of Bill
House Bill 885
authorizes a two-year window between graduation (or
receipt of a GED) and enrollment in a public, post-secondary educational
institution for a qualifying student to maintain eligibility for a lottery
tuition scholarship.
FISCAL IMPLICATIONS
According to a CHE
survey of institutions, the projected fiscal impact is difficult to
determine. The following is based on
student eligibility data and award data compiled by CHE, with some modifications.
A recurring,
incremental fiscal impact from the two-year window for maintaining eligibility
would begin to impact the lottery tuition fund in FY05. According to financial aid officers at two
institutions, this bill would be interpreted similar to the current program,
such that entering students would not be eligible for lottery tuition
scholarship funding until the second semester.
For example, even if May 2003 graduates began attending the
post-secondary institution in Spring 2004, these students would not be eligible
for lottery tuition scholarship funding during the Spring 2004 semester. The earliest fiscal impact for this cohort
would be Fall 2004, or FY 05.
Most of the fiscal
impact would occur in FY06 because students starting in Spring 2004, Fall 2004,
Spring 2005 and Fall 2005, would receive funding for one or two semesters,
based on eligibility criteria, in FY06.
According to national studies, the longer a student waits to enroll in
college, the less likely the student will enroll on a full-time basis. As such, the recurring fiscal impact is considered
to be roughly 1.5 times the impact for a one-year window. As such, FY05 impacts would be small, perhaps
about $175.0, with a full impact in FY06 of about $2,100.0.
Increases in resident
tuition rates as well as underlying scholarship eligibility and demographics
would influence out-year fiscal impacts for this bill as well as the existing
program.
TECHNICAL ISSUES
An applicability clause would address any
potential questions about which high school graduating class would be entitled
to the two-year window of eligibility.
OTHER SUBSTANTIVE ISSUES
According to a recent
budget analysis of the Lottery Success Scholarship Program, fund balances are
expected to increase through FY08, and the fund will support current
eligibility guidelines and demographic projections through 2013. However, recurring expenditure growth is
projected by CHE to exceed recurring revenue growth in FY09. The CHE does not support changes to the
Lottery Success Scholarship program.